Skyrocketing Bitcoin mining activity pushes hash rate and difficulty to unprecedented heights, with a surge in miner availability.
The digital cryptocurrency Bitcoin has seen a significant price surge in recent weeks, coinciding with multi-week record inflows to U.S. spot Bitcoin ETFs. This surge follows a period of high activity on the Bitcoin network, with the hash rate reaching a new record high of 1.12 billion TH/s on September 12, according to Bitinfocharts data. The network's difficulty also hit a record high of 136.04T on the same day.
The difficulty adjustment on the Bitcoin network historically precedes an explosive price surge, according to experts. However, they are more evenly split on Bitcoin's broader outlook, with 56% expecting it to top $125,000 by year-end and 44% seeing it dipping under $105,000.
The next difficulty adjustment for Bitcoin is scheduled on September 18, 2025, with an estimated increase of 6.38%. The increase in difficulty occurs once every 2016 blocks are mined, or roughly every two weeks. This increase is a result of the growing computational power of the network, as represented by the hash rate.
Investors are bullish and expect Bitcoin's price to push higher due to the upcoming Federal Reserve rate decision, which is due on September 17, with markets primed for a 25 basis point rate cut. Varun Satyam, co-founder of DeFi platform Davos Protocol, stated that hash rate surges post-halving have historically preceded price rallies, suggesting we may be entering a similar phase now.
However, it's important to note that the founder of the DeFi platform mentioned, Happy Walters, has not made any direct statements regarding the current situation with Bitcoin in the provided information.
Bitcoin's miners' reserves have also bounced to a 50-day high of 1.808 million BTC on September 9, per CryptoQuant data, indicating that miners are not looking to sell their stack. This could further support the bullish sentiment among investors.
As of the current paragraph, Bitcoin is trading at just under $115,000, up 0.8% on the day and 2.3% on the week, per CoinGecko data. Users of prediction market Myriad, launched by Decrypt's parent company DASTAN, expect Bitcoin to hold above $105,000 through September.
Satyam also mentioned that easing selling pressure and the right macro backdrop could lead to a decisive upward move for Bitcoin, with altcoins potentially following suit. This suggests a continued positive outlook for the cryptocurrency market as a whole.
In conclusion, while experts are divided on Bitcoin's future outlook, the current surge in price and record highs in hash rate and difficulty indicate a strong interest and activity in the digital currency. The upcoming Federal Reserve rate decision and potential easing of selling pressure could further drive Bitcoin's price higher.
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